PodcastTurkey's banking watchdog eases regulations on lira loans to FX-rich firms
Turkey's banking watchdog BDDK has eased some of the regulations that had limited Turkish lira loans for firms holding high levels of forex assets.
Reuters
Turkey's banking watchdog BDDK on July 7 eased some of the regulations that restricted FX-rich companies from obtaining Turkish lira loans.
A decision published on the BDDK's website showed that it had exempted firms whose auditing obligations begin at the end of 2022 from the new regulations, in addition to easing some steps regarding documentation and other regulations.
Two weeks ago, the BDDK restricted access to new lira loans for companies subject to independent audit if they have more 15 million lira ($908,000) of forex cash assets and they exceeded 10% of total assets or annual revenue.
The move was part of efforts to stabilise the Turkish lira after it shed 24% this year on top of 44% in 2021 and help the central bank build up its depleted forex reserves.
The Istanbul Chamber of Industry (İSO) voiced concern about the latest regulations on July 5, saying exporters faced serious problems accessing financing and describing the situation as a "financial bottleneck."
The BDDK had met with the "Big Four" auditing firms last week for talks on uncertainties surrounding the new regulation, sources said.
Turkey’s currency crisis poised to worsen with severely depleted central bank reserves, say expertsEconomy